USD/CHF: New low not confirmed by the daily RSI - Commerzbank

Karen Jones, Analyst at Commerzbank offers a technical update for the USD/CHF pair and foresee an extension of the recent slide towards the 0.9420 September low.

Key quotes:

“USD/CHF has recently eroded an uptrend from 2015 and its 200 week ma at .9658. This was also a Fibonacci retracement. However the new low has been accompanied by a divergence of the daily RSI which reflects a loss of downside momentum and we would allow for some near term consolidation. The intraday rallies are indicated to terminate circa .9650/75.”

“The failure of the market at the 55 week ma introduces potential for the .9553 June 30 low and the .9421 September low. The market is on the defensive near term while below .9845, initial resistance is .9700.”